Magnetoencephalography (MEG), the measurement of magnetic fields generated by electrical current in the brain, promises to be safe , sensitive, non- invasive procedures for the measurement and localization of normal and pathological brain function. The long term objective of this research is the development of MEG as a clinically useful functional imaging tool through the development and implementation of better source localization algorithms. We will develop tools for calculating magnetic and electric fields in realistic head shape models. We will apply developments in computational inverse theory to the solution of the MEG inverse problem resulting in new technique for source localization, source activity mapping. Procedures will be designed and implemented for improved graphics capabilities. This project has the potential for significantly improving existing MEG source localization software, thus extending the usefulness of MEG. The results will find application in the functional study of the normal brain, improved localization of epileptic foci and other neurological disorders, neuropharmacological studies, and in the development of new sensor technology for neuromagnetometry.